| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2012) 280 final (6.6.12) |
| Publication Date | 06/06/2012 |
| Content Type | Policy-making |
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The financial crisis severely tested the ability of national and Union-level authorities to manage problems in banking institutions. Meanwhile, financial markets in the Union have become integrated to such an extent that domestic shocks in one Member State may be rapidly transmitted to other Member States. Against this background, the Commission issued a Communication in October 2010 setting out plans for a Union framework for crisis management in the financial sector. The framework would equip authorities with common and effective tools and powers to tackle bank crises pre-emptively, safeguarding financial stability and minimising taxpayer exposure to losses in insolvency. The current proposal aims to harmonise national laws on recovery and resolution of credit institutions and investment firms to the extent necessary to ensure that Member States have the same tools and procedures to address systemic failures. In this way, the harmonised framework should foster financial stability within the Internal Market by ensuring a minimum capacity for resolution of institutions in all Member States and by facilitating cooperation between national authorities when dealing with the failure of cross-border groups. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0280:FIN:EN:PDF |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
